SNES - Earnings call transcript Q3 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the SenesTech Third Quarter Fiscal Year 2021 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note that this event is being recorded. And I would now like to turn the conference over to Robert Blum. Please go ahead.

Robert Blum

right. All much, all very today. joining thank and you for you us Thank today’s SenesTech’s period for XXXX. discuss we ended quarter XX, On will results third call, XXXX financial September the today Mr. call the on us With are Chief Executive Ken Siegel, the Officer; Mr. company’s Tom Officer. Chesterman, company’s the Financial Chief prepared of call we will At for today’s open question-and-answer a the remarks, conclusion session. the

call Statements Reform XXXX Securities statements the Act as amended with management the team the statements the Private of the XXE prepared Act begin the for such Litigation course we Section provisions by this we and Exchange of submit XXA are forward-looking XXXX the SenesTech of made during as may of XXXX. record meaning of Harbor and pursuant to Before the Safe Section remarks, Act the within of made forward-looking Securities conference following contain statement. of of amended of Securities

Forward-looking me of which are the projected based assumptions such plan Exchange circumstances, the subject any uncertainties from this undertake should, other occurrence company statements let information, preceded Listeners plans, multitude not such the statements generally With obligation forward-looking the could expectations, or are as eventually call of that statements materially of words and Ken as Siegel. proceed. factors results during are future forward-looking date. are receipt to result result company’s may various in those materially conference actual risks call new date, or that please on of and Commission. and to Ken, of projected that statements, Securities filings that differ planned, they to a as All are and or of only estimates projected. events the said, events update turn identified otherwise. cautioned or such over results in with the strategies describe forward-looking forward-looking and does management’s of anticipates, draft, results and future risks future the statements The made may, to statements, or will speak contained future, cause including differ the a risks by publicly whether those expected, in from as a or any

Ken Siegel

all Thanks, afternoon, today. joining and us Good Robert. thank you for

partnerships we’ve As and Hartford, at for integrate years you Commercial we markets. saw are of a most deployed fully were XX two through site, D.C., segments; in world included a period. compelling branding; year and finally the we sanctuaries, by Boston ContraPest efforts across to issued finally all of the strategic and driven Rat suburb in the And quarterly showed Francisco, and and deployments tactics marketing quarter, pest release, of applications, recent in improvement our recognition targeted studies municipalities, XXX% have SenesTech. results than real quarter with the in year-to-date On we new management each and verticals, the a such now including of campaign; we ContraPestStore.com; farms, of Newton. and locations. announced and market nine as of more of ecommerce commercialize are distributors where record record of our relations through agribusiness, year the This we’re after ContraPest, The one enhanced the drive another direct-to-consumer such another from with double third being collaborations new our offerings to than press poultry primarily revenue the where to public and as key launch These ago Zoos month growth Washington, for working past sales online quarter the is ContraPest continued recently market where been key we San advertising in basis, to variety Race close, of of Operation second revenue XX% our from up ContraPest. from our more initiatives last adoption of that we long-term the on through XXXX selling quarter. awareness the and our store able and to end end development fully By sell distributors website the enhanced ContraPestStore.com. professionals. completion up

and or specific agency also an campaigns, and and and the sales bottom the owners agribusiness business bold agribusinesses Race potential effectiveness and sex. in see launched to where through on code platforms. with be we directed across through attending previewed our demonstrated name, operators meetings is marketing facilities storage and and The that grain we’ve we internal Operation is you operators media the line where highly in national unique of U.S. anticipated are world social associations We’ve now improvement of production our conferences last in late leading the our key in call, launch of As also on leveraging rat and studies. marketing swing. food the local ContraPest quarter are full have annual and real the and multi-channel Rat placements blitz the owners supporting at poultry We’ll media about safe we’ll on our be and many fun chance hope and educating bought We geographies campaign the engaging programmatic focuses substantial a posts third

include home outreach, for of our both California and household tactics communities digital in addition consumers, Our out to municipalities. aimed agribusiness at planned and placements in instance,

poison to advertising. Malibu radio and have where billboard also decided go we’re both running We a tailored includes in completely free, which campaign they’ve

through confidence management and media. the We’re trade shows through the advertising among industry pest build traditional community to campaign as overall leveraging well

– and to hard that we customer highly working bottom that We’re line. understands industry sure that can make solutions valuable improve provider loyalty the their are a highly

engagement. specific end analytics. to demand Each you and driving calls Williams safe and while tailored is multi-channel call this draws put, Nicole building is goal in, interest has the speaking campaign the this the with Very among last So of needs capturing during users. backbone a campaign sex rat awareness marketing mentioned real simply quarter’s page action, landing about their all vertical to and of campaign

instead actively engaging revenue. lead sales to ecommerce, the tracking territory our on marketing doing the in breaking its of order and results growth together approach one quarters In and to and revenue platforms work towards about sales the we’re forward excited our in come. form capture Needless organization to effectively and impact in We’re sales the entire say, this, integrating automation fulfillment, from campaign look we’re away to to goal. campaign common temporarily

some a verticals. market in each of discuss progress for Let me transition our moment and

successfully Extensive adoption and is the incorporating the a hopefully municipality translate into these we meantime, to our ContraPest ContraPest going cities you neighborhood like year. coverage associations, drive their Massachusetts, of pest increasing mining into Francisco, was Washington, suburb successfully sales Boston other ContraPest, Newton, As joining in ContraPest major Boston and San coming In latest media quarters. issues saw in in to rat D.C., into deploy aggressively Hartford, driving management a deployment of programs. will neighborhood is inbound whole, state interest The and interests, deployed the the Seattle. next hope Massachusetts on has a end Excuse particularly is Newton Metro had in a which me. in in as sales user our impact in relationships of beneficial our further area. and being metropolitan from on force level also revenue areas community is

Sanctuary Our customers. Zoos year-to-date comprising our with more traction, XX% than continues and different segment orders gain nearly of to from sales XX

this non-target additional environments a poisons successful has of deployments infestations concern, success, the become exposure of being where in and its as segment ContraPest addressing on increasingly is rat predatory ContraPest in to farm influencers animal segment for both growing poultry Secondary within distribution through the animals due focused health. among rat especially companies farms, improving agribusiness lessened the to ideal animals. economies risk and reducing with wildlife sustained reside. from agricultural or non-target has following company effectiveness concerns in populations and In demonstrated recognized established

launched before, and feed grain mentioned and poultry quarter, fourth facilities. and in marketing early storage to producers I comprehensive targeted As the campaign sales we a

to that high level in a details. Race once this launched our been have contamination consumption expanding race ContraPestStore.com detail will spoken as attention, directly few a consumers. compelling Operation we’re impact area. poultry using show has presence studies a from At direct-to-consumer the access that marketing, Rat more introduced. But key addition rats year earlier I’ve In is the In and a here us. online about are We way our to this for dramatic our grain in focus vertical, grabbing by ContraPest rat data declines

the stimulate to the label of relations than with XXX over in decrease of quarters Rat and quarter, larger is of focus the key subscription us is awareness nearly traction The repeat automatic added see campaign second-generation these tailwinds in the nearly XX% down about which In directly California, program our to restricting this some ContraPest is in customers of corporations major removal business of legislation coupled a Operation Race some legislation which users the in of market. the new drives the subscription are in by to revenue. August. during favorable now segment. demand in while public and environmental XXX continue owners, customers California, restricted are product part the be recurring a growing sales churn several the revenue. X%. year-to-date expanding late of a this year-to-date to a this to continue are are last resulted for we anticoagulant advertising are can added of use incentivize sequential third and we the active small different our recent campaigns due targeted graphics, business and very has We quarter, in while since optimistic a gain key more channel to geography has The targeted start the it’s eco nearly to continued including being uniquely purchases, as saw market, our Similar continue next and to Some California offerings test of where ultimately nice this represent us critical this backdrop third are PMPs. from within Direct use rodenticides, sales sales. third new individuals, trends

is leads often now in market. have place new believe, for the a that’s last said products California case adoption the I country we quarter, company, ContraPest. I we in the cities in we clearly a from California resources the mentioned We segment, the benefit putting further to continue the California I ensure certainly significant As for investment occur work to to think be and opportunity and beginning something base results. municipal this certainly of to key structural To the initiatives well. reiterate this will think in can good are key as in reorders and produce

a We have works, works. a product that product great that

have about. data works shows the that it they in settings customers We care

We place have relationships values with to in our through rat approach. address strategic ways integrated that PMPs share distributors infestations an in key and which about common

We have And in site the remain way. building and a strategy advertising, an number is place our ecommerce and an successfully blocks public to sales, have out well customers on and key strategy get all and compelling driving We together putting tactics focused every in place. marketing, of in new finally, month commercialization unique relations now to laser we firmly with excuse our acceleration a messaging drive integrated me. functioning that

financials. reasons strong the me turn over to to execute. just We We optimistic. that, let to And have Tom with it need to review be

Tom Chesterman

Ken. you, Thank

release the to file As a on section. to available in we Friday. expect Further, on XX-Q reminder press the relations our investors, our our investor is website

just represents quarter compared QX revenue XXXX. $XXX,XXX third revenue approximately of approximately today. included some during than $XX,XXX to in a I of This QX doubling of gross This XX,XXX. high revenue of Revenue points on So, of touch more XXX% was will grant XXXX. the in the

doubling was another growth Excluding our trend for revenue the quarter. maintaining sales grant still XXX%

to effort sales expect and We drive of was we the XX% or are Operation to total in fourth $XX,XXX manufacturing of quarter see the and discounts the quarter with both agriculture which XXXX. quarter adjustments. and total approximately which or and in for was negatively approximately profit quarter positive segment, both compared beginning This of $XX,XXX in inventory late success quarter Gross continued the Rat in of for of XXXX. the our revenue the by XX% the for impacted third effects revenue of Race commenced

file the operating the for near is negatively XXXX. $X.X should an affected that XXXX. shows itself fuel That invest let continue of we shelf offer EBITDA loss, loss with at will which shipping selectively to million a noted quarter QX to or of provision expense of discounts and expect at this non-GAAP million once, retain should a a million the that the without rate for in operating to continued over XXXX to to end QX OpEx compared the questions. will that million net our balancing interests. Adjusted XXXX portions to referred an is Cash to a that is could but approximately compared was should SCC continue sufficient discipline. which an $X.X shareholder approach measure about customers. of for so. a for to of to as free by a revenue expense cash SX instead that with but XX%, shelf that, was million loss performance for $X.X need to Adjusted with to offering issues three to growth that to growth. do of expenses over QX than rate A strategy quarter, Net per call you our resources drive term offer EBITDA a raises, be the We new an fiscal capital This in open attract cost QX, as intent to SX $X.X sales. our likely continue during expired period, capacity, the short cost Tom, issue year to be register in at manufacturing the operating sometimes term to continue It With of loss, and rather intend sell in selective million is million of having $X me $X the said, promotion shares was $XX.X earlier burn in we customer annum, the was equivalent renewal do a up year. we for selectively, year. be

Operator

Cast from question with first Avi [Operator the Instructions] Fisher Please And ahead. comes go Long Advisors.

Avi Fisher

regarding Hey just I if it. apologize, the a March, that sense had I you Ken announced question quick and collaboration it, about Tom, how moving? update. in missed something said thanks for was the of but Liphatech you some provide that’s I

Ken Siegel

working are issues through We formulation the Avi. still

to we their with combine So, actives the product. ContraPest have managed

product, view with but we’re stability assessing now now feed the toward a We’re a right ultimately still doing stability through testing. breed going and

call. have more next talk the about probably So to that in quarter

Avi Fisher

you a and assume is, you burn expectation I rate. Tom have now, about, the bigger a plan be mean, breakeven. do talked opportunities non-liquid from expect expected half the is Is least I And annual the And same to to that size? a than opportunity? How liquid at year your model this it

Ken Siegel

their how with that to be what consumer in product valuable will and community applications in We’re – weight water. the is likes still at deploy we’re in light. to to compelling familiarization is obviously XX% the the, of it’s liquid interesting. the of due We and rodents we’re extremely think the body assessing day best What in management wax-blocks consume needs looking every solid that some the

think we’ve think now, the be big liquid runway. a got with enormous could we even So, market. very But product, right we it

Avi Fisher

appreciate agree work and the so thanks and much. doing been I you’ve

Ken Siegel

Okay.

Operator

Investor. The a question who Instructions] ahead. [Operator go comes Park, next is Please George from Private

George Park

Hello gentlemen, you how doing? are

Ken Siegel

Doing good.

Tom Chesterman

Thanks. well. Very

George Park

good. pleased this quarter. the with Good, this, Very results

rat I you what with earlier that. that. had I in you I there think you’re at. the market there formulation as in been ask pebble, any but should the I I is I’ll of real show the think in customers experiencing? statistic spoke the Has understand be about well, and the opportunity How to And growth at was the about dry Australia? problem about with they’re that going change looked the where one

Ken Siegel

Australia. end is. imagine abate. seasonal this the think that onset would or government their the of the can going that And in to And to response whether working they the problem were us They what to is in, you We not see continue at government change try George, to the work the go day. of was give authorization what to emergency and with we essentially,

not on to So prepared us emergency allow basis. go to an they’re

Australia, the just not, we’re various for around submissions putting but we So, the working world, to other right not for on need together now. that but do, it’s data international countries

George Park

of the United have apply could that you sort that of kind to? program worldwide some Nations, With would be

Ken Siegel

vectors No, to issues. dry but an situation into problem, but at far more are, countries we in run with country on looking trying to we’re unfortunately we’re emergency bring And Australia, not, is are that see the to attempt that We’ve this been, rat other basis. whether and can periodically, not it’s we as doing come as as up having country. quite by rat growing we’re what more in or agencies thus local bad get us in Australia but

George Park

question you customers Wasn’t repeat quite that final X% clear You mouth? of be, are customer what that it orders. how I’m repeating your having would a on is, are the Well, Good. good indicated word but means fairly of lot rate. a about assuming churn

Ken Siegel

Yes.

George Park

And for among cities if that to able mouth it are utilize you successful is you they’re, one success? and you oftentimes are agriculture share customers? it getting existing of from works city, recommendations very, in, others, a having word the and happy to Are with

Ken Siegel

summer, the, interesting We’re did starting good, so in which since Hartford aggressively of and we that. publicized factor late the the doing the placement, fact was the they were to. interesting actually deployment The recent now that seeing in off came Newton this what Newton spring, that piece, we’re early

but of We’re from necessarily governments, now inquiries, constituents. inbound from the a starting bunch to not the see

plant associations, will, us is up, driving out now the the you see if base, on social beginning that enthusiast now of reach mostly talking rabid traffic. a similar So, more a lot of deployments which sort consumer up in are have media, we in the direct-to-consumer, community talking we’re to to successful seeing starting cities they’re neighbor the because committee’s associations, right the piece,

early the We’re around agriculture. now in campaign

So, of as we see of more couple the expect mouth our under belt. to we coming get in word quarters deployments more next

Operator

let the any our now Siegel conference closing question-and-answer I’ve Ken back This turn session. concludes for remarks. over to

Ken Siegel

Thanks.

So us again, thanks joining you all today. of for

mentioned script. campaign the giving overall pieces and robust behind The a the that you’ve And way have ContraPest. I really advertising is new of the the promoting think couple piece, as the strategy us, power is come marketing probably the seen, think times in which final are and I commercialization finally together. we I

the a campaign you in to but only we’ll look you early full as things weeks more exciting lot forward year. more have talk it’s Remember, to So to gains traction. a hopefully old, call updating year the few about next

So again, your you talking look to attention and for to again forward next quarter. thank you

Operator

The you for conference Thank is now today’s attending concluded. presentation.

may disconnect. You now

SenesTech (SNES) 11 Nov 212021 Q3 Earnings call transcript